Using Multiple Crypto Exchanges - Is it worth it?
Managing crypto wallets in multiple exchanges is time-consuming for sure. On the other hand, it comes with great benefits. It is always good to diversify and use multiple exchanges. We all know, that not all exchanges allow using all the currencies and tokens for their own reason. But this never limits our usage. There are many types of exchanges and they all serve different purposes. So, I would say, it's okay to use.
But that's not the conclusion. We have to carry some risks as well by using multiple accounts. I'm going to share my personal experience.
There's no argument that trading as well as holding funds on different crypto exchanges is a complex situation. Even if you don't manage this on pen and paper, there will be always something in your head that will create a little extra stress.
Not only that, the transfer fee goes up from time to time from one exchange to another. You have to always pay some extra for this.
In some cases, I don't count the small amount that I left there. To be honest, it always bothers me. I'm not a millionaire and I believe it's not a good practice. But we all know the withdrawal fees and all, so it's better to leave some and move on.
However, it's vital to use multiple exchanges because not all exchanges support crypto derivatives or crypto to altcoin. For example, Binance trades the numerous available altcoins there but there's a high chance that you will find something is still lacking. And that coin is supported by some exchange you may never hear of.
If we talk about fund security and or something unexpected happens, then it's better that you have your funds in multiple accounts for trading.
One of my reason to use multiple exchanges is that they offer very specific types of trading, such as scalping, swing trading, and technical analysis.
On top of that those exchanges offer different instruments that are unique to that exchange. So we are good to go.
It’s not unreasonable to use 3–4 different exchanges. But it's up to us how we manage it. For beginners, it's hard to trust, manage, and handle the complexity of multiple accounts. Good thing is, that most of the exchange interfaces are similar so it would not take much time to figure out what we need to do.
Keep the risks in your mind, it's time-consuming and brings extra hassle sometimes, also you may have to pay an extra fee for this. But if you are a regular trader, and like to diversify your funds, and analytics, then using multiple accounts is worth it. It all depends on your goals and what you want to do.
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